Tabloid Publisher Threatens To Leave

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American Media Refuses County Financial Incentive After Disparaging Remark

December 4, 2001|By Kathy Bushouse Staff Writer

DELRAY BEACH — Angered by a local business leader's comment, the head of tabloid publisher American Media Inc. turned up his nose Monday at a $390,000 county grant for anthrax costs and threatened to move the company out of Florida.

After a former member of the county Business Development Board called the grant money "the most outrageous type of extortion a business can threaten," AMI's David Pecker held a press conference on Monday to say, "We are withdrawing our application here, immediately."

AMI, publishers of the National Enquirer and other supermarket tabloids, employed Robert Stevens, the first person in the nation to die of anthrax terrorism. Stevens died on Oct. 5, and the company's $4.6 million headquarters in Broken Sound closed on Oct. 7 after anthrax spores were found.

The money AMI would have gotten is county cash set aside to lure new businesses and retain existing ones. The County Commission approved the payment Nov. 20 and was scheduled to finalize it today.

AMI was to be given the money to help fix up its temporary offices in Delray Beach. In exchange, the company promised to keep 390 full-time jobs at an average $65,000 salary in the county for five years.

Pecker, chief executive officer of AMI, said the deal unraveled after he read a Sunday business column in The Palm Beach Post in which a former member of the Business Development Board was quoted as saying that AMI's quest for county money was "the most outrageous type of extortion a business can threaten: Give us money or we're going to move."

That comment led Pecker to outline his plan to move the company if 90 percent of the employees agree.

Pecker said he plans to look outside Florida for a possible new home for AMI. He had been scouting other office sites in Palm Beach and Broward counties.

The AMI leader also blasted state and federal officials for being unresponsive to the company. Gov. Jeb Bush didn't visit AMI employees during two trips to Boca Raton, Pecker said, and he repeated criticism of the U.S. Environmental Protection Agency's handling of the anthrax situation.

A governor's spokeswoman said Bush called Pecker at least once, arranged for the state's health secretary to visit the AMI staff, and offered to help AMI find temporary and permanent office space.

After Pecker's noon press conference, Palm Beach County officials scrambled to smooth over any misunderstandings, saying the published comments didn't represent the county's position.

"I simply want to get the word out to AMI that we are going to do anything we can possibly do to convince them that they should remain in Palm Beach County," said Larry Pelton, president of the Business Development Board. The panel, which is responsible for recruiting and keeping companies in Palm Beach County, recommended to the County Commission that AMI get the money.

The newspaper column attributed the statements to a director of the Business Development Board, but Pelton said that person has not been a board member since Oct. 1.

Pelton said he hadn't talked to Pecker, but would do whatever he could to convince him to stay. The company has 535 employees statewide.Employees will be asked to vote on whether to return to their Boca Raton offices -- where a cleanup is planned.

If 90 percent of AMI workers say they want to return to the building, Pecker said that will happen. If not, he said the company would find a new home -- either in Florida or elsewhere.

The company has temporary office space on Congress Avenue in Delray Beach. Pecker said the company has spent $10 million since the anthrax outbreak, including $2 million to buy new furniture and equipment for the temporary quarters.

If the employees vote to stay, Pecker said he would still refuse the county's business incentive money, but would accept a county property tax break or other financial relief.

The company sought a break on its $100,000-plus property tax bill this year, but county officials have said that's unlikely, at least until next year.

Still, county officials want to do what they can to help AMI, said County Commissioner Warren Newell. A letter reiterating their interest in keeping AMI was being drafted.

"I think we've even looked at helping him on reducing his fees for garbage, because there's no garbage being collected there right now," Newell said. "In this economic time where we're all very tight because of the loss of tax money, to even find any money in the coffers today is difficult. But we thought it was important to assist AMI and its employees."

County Commissioner Burt Aaronson described AMI's decision -- and especially the stated reason for it -- as "unfortunate."

"I find it hard to imagine that someone who owns a bunch of newspapers that write about people wouldn't have a thicker skin," he added.

Staff Writer Jennifer Peltz contributed to this report.

Kathy Bushouse can be reached at kbushouse@sun-sentinel.com or 561-243-6641.